Legal Question in Real Estate Law in New York

Borrowing money for down payment

Dear LawGuru.com,

My wife and I are looking to buy a house. We have some savings but not enough to make a down payment we want. We plan to borrow $25,000 from my brother-in-law. I heard that there could be some difficulities if there transaction is more than $10,000. Should my brother-in-law provide anu proof of where money came from. Should we have any documents about borrowed money once we use them for down payment?

Sincerely,

Borrower


Asked on 8/22/03, 11:21 pm

2 Answers from Attorneys
Seth Kaufman Seth M. Kaufman

Re: Borrowing money for down payment

Your lender will probably care more about the fact that you need to borrow the downpayment than how your brother-in-law earned it. There's a good chance that the commitment, note and/or mortgage will prohibit it, in fact. Feel free to call me at 212-367-9167 to discuss this further. I do not charge a fee for the initial consultation.

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Answered on 8/31/03, 7:37 pm
Mitchell Drucker Law Office of Mitchell S. Drucker

Re: Borrowing money for down payment

I suggest that you consult with a reputable mortgage company or mortgage broker prior to making any transactions. They should be able to tell you what you need to do so that you don't have any problems.

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Answered on 8/23/03, 5:12 pm


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